Balochistan is rich in natural
resources. There are greater investment opportunities in all sectors of
provincial economy. The distinctive climatic conditions in the province provide
diversity and a great variety for fruit production.

Nature has bestowed Balochistan with so
many natural resources and its favorable climate and various plateau of land
further enhanced its importance by producing dates, cherries, apricot,
pomegranate, grapes and apples.

The province makes up 70 percent of
Pakistan's total coastal belt. No foreign investment can be allured as long as
the province remains in the state of turmoil. Many foreign firms have closed
their operations due to the security reasons in the province.

The province offers access to new
resources and markets and the prospect of more rapid growth. The province's
geo-strategic location makes it the most attractive for transit traffic to the
landlocked Central Asian Republics (CARs).

Gwadar port would provide Afghanistan
and the CARs the shortest and fastest access to the warm waters of the Arabian
Sea. The port can also provide them with warehousing facilities along with
transit and possibilities of import of goods. The port and its related planned
regional highway projects will help Balochistan become a world-class mining
center.

For landlocked Central Asian economies,
Balochistan offers enormous opportunities in oil and gas sector for foreign
investors. The prevailing security environment cannot attract foreign investment
in the oil and gas exploration sector and also call into question the guarantees
of security for a proposed multi-billion dollar gas pipeline from Iran that
would have to run through the province.

The government should open up the
province for exploration and production activities to fully and efficiently
exploit its gas potential. The province presently produces more than 40 percent
of the primary energy of the country in the form of natural gas, coal and
electricity. The E&P projects will open up the land of Balochistan converting it
into a land of opportunities for foreign investors. The country needs modern
technology for drilling.

According to one estimate, as many as
25 blocks of oil and gas were closed and 16 blocks had been opened with the
co-operation of Balochistan government during past two years. The government
needs to explore indigenous oil and gas reserves. Talks should be held with the
Baloch leaders to expedite exploration activities in the province.

Balochistan is the province from where
the greater part of the proposed multibillion gas pipelines would have to
traverse-either from Iran, Qatar or Turkmenistan. It is in the supreme national
interest that security environment in the province would be ideal for bringing
foreign investment in the country.

The province's huge yield potential of
high quality deciduous fruits can efficiently be tapped by making investments in
establishing 'crop specific zone' and "fruit processing units" in the province.
The key problems baring long-term investment in fruit production include
shortage of irrigation water, non-availability of groundwater in highland, lack
of marketing infrastructure and facilities like farm to market roads and sale
centers, dearth of skilled labor and lack of technical knowledge and expertise.
Investments can be made in building cold storage houses and air-conditioned
transportation facilities to minimize the risks to spoilage of fruits.

The province has an ideal land and
suitable conditions for shrimp farming. New hatcheries should be set up in
coastal districts like Lasbella and Mekran for shrimp production as viable
business - ventures. The provincial government should allot lands in coastal
districts of Lasbella and Mekran to private parties interested in promoting
shrimp farming. Government should announce incentives for induction of the
private sector in this field, as the interested entrepreneurs and investors can
play a key role in promoting the shrimp farming in coastal areas purely on the
commercial basis.

Balochistan mineral sector needs to be
developed for attracting international investment particularly in metallic
minerals and coal related energy projects in the province. The province is rich
in mineral resources. It is endowed with a large number of metallic and
non-metallic minerals. The rising prices of minerals like coal, chromite,
copper, lead and zinc in the world metal market has brought the mineral rich
province in the radar screen of foreign investors. The province's near term
growth potential exists with commercial exploitation of Saindak copper and gold
deposits and the possible future exploitation of Reko Diq copper deposits in
Chagai and Duddar zinc-lead deposit in Lasbela district.

Balochistan's strategic copper and gold
assets have attracted interests of foreign investors who have purchased stakes
in copper projects during the last five-year period. The Chagai district is
expected to become a hub for the metallic mineral mining industry in the next
five years. Saindak and Reko Diq projects can make Pakistan one of the major
producer and exporter of copper in the world. The country can save a huge
amount, which is spent on the import of minerals each year.

The government may establish Export
Processing Zones (EPZs) in different districts of Balochistan where mining and
production activities are underway. The utilization of EPZ facilities by foreign
companies would bring foreign investment in mineral sector. There are other
indirect benefits of establishing EPZ such as income from taxation, development
of rural areas, infrastructure and support industries and poverty alleviation.

Worsening law and order situation in
the province has raised security concerns among foreign firms working in the
province and many Chinese engineers have lost their lives in acts of terrorism
during last five years. The incidents of violence and terrorism that took place
in different districts of the province including Gwadar during last three years
had forced the government to carry out development activities at gunpoint, as it
continued to beef up security in Gwadar. The local people have reservations
about the Gwadar project. Baloch nationalist parties had also flayed the former
government for ignoring the people and the Baloch leadership while it signed
accords with various international firms without taking them into confidence.
They call the federal government's decision of transferring the management of
Gwadar port to the PSA as an infringement of rights of the Baloch people.

Law and order problem has affected each
and every sector of the provincial economy putting most of the development
projects in cold storage. Today, the worsening security is the gravest risk to
the provincial economy, as the contractors and investors are unwilling to start
work on new projects or complete the ongoing development schemes in the restive
province.

The province direly needs investment
for the development of its enormous resources in all economic sectors.
Balochistan package is a good initiative but the government must try to resolve
the security problem amicably through a peace truce with the tribal jirga and
halt military operation in the province.